Bank Gospodarstwa Krajowego (BGK) has successfully concluded 201 loan agreements, granting over PLN 1 billion in financing to support the green transformation of Polish cities. This milestone meets the 2024 targets set by the National Reconstruction and Resilience Plan (KPO) within the prescribed timeline, the bank announced. Since April, when BGK signed an agreement with the Ministry of Funds and Regional Policy, the bank has introduced targeted loans to its portfolio. These funds have primarily supported local governments, resulting in the creation or revitalization of over 90 hectares of green spaces, a reduction of more than 120 GWh in primary energy consumption, and the planting of nearly 1 million new plants. “This is the largest project for local governments under the KPO, with a funding pool of PLN 40 billion,” said Minister of Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz. “The initiative aims to enhance the quality of life in urban areas. Applications amounting to nearly PLN 4.3 billion have already been submitted, encompassing 173 projects in small cities, 417 in medium-sized cities, and 388 in large urban centers.” Marta Postuła, BGK’s First Vice-President, emphasized the dual benefits of the initiative: “These investments are not just about fulfilling KPO objectives; they directly enhance the quality of life for residents by reducing pollution and increasing urban greenery. Additionally, they stimulate economic growth, particularly in smaller towns, which account for the majority of signed contracts. This aligns with BGK’s mission of fostering sustainable socio-economic development in Poland.” The loans have primarily supported projects involving water and sewage infrastructure, energy-efficient lighting, and the greening of urban areas. Small and medium-sized cities have been the main beneficiaries, accounting for over 60% of the loans issued. Larger cities, while applying less frequently, secured higher amounts, with Warsaw leading as the record holder, signing contracts worth over PLN 400 million. Loan agreements under this initiative can be finalized until the end of August 2026. However, BGK’s strong collaboration with local governments is expected to ensure the full allocation of funds well before the deadline. BGK highlighted the favorable terms of the loans, with interest rates ranging from 0% to 1%. For non-revenue-generating projects, up to 5% of the principal can be forgiven, making the financing highly advantageous for municipalities. As Poland’s state development bank, BGK plays a pivotal role in driving economic growth and sustainability. It collaborates with development institutions such as PFR, KUKE, PAIH, PARP, and ARP, financing major infrastructure projects, enhancing housing access, and supporting Polish businesses domestically and abroad. With this green urban transformation initiative, BGK continues to contribute to Poland’s transition toward sustainable urban living and long-term economic resilience. Source: Bank Gospodarstwa Krajowego and ISBnews